Suppose the supply function for product X is give by $Q_x = -10 + 2.5P_x$. If the price is $8, the producer surplus is 30 40 20 25
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We can substitute P = 8 into the supply function Q = 10 + 2.5P: Q = 10 + 2.5(8) Q = 10 + 20 Q = 30 So, at a price of $8, the quantity supplied is 30. Show more…
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